In the process of business operation, there are many key factors having deep influence on the realization of an operation target. Most businesses pay more attention to the technical improvement in order to get more orders without knowing that real business operation performance comes from not only technical improvement but also good business flow management.
Business flow management plays an important role in the allocation of business resources. Improper resource allocation would cause unnecessary waste of many business resources and reduce the chance of making increased profits, which in turn has adverse influence on the potential for constant growth of the business. Under this condition, a manager has to take more time and make more effort to upgrade the technical level, in order to increase revenue for achieving the projected result. Further, the waste of business resources caused by improper allocation will become worse with the expansion of business.
Therefore, it is very important for a business to understand the key influential factors in achieving the operation target thereof. Since there are so many influential factors, it is impossible for a manager to handle all these factors at the same time. The manager has to locate from all these factors the most important ones. By managing and improving the most important factors, the business can be properly managed in a simplified manner while increasing the operation performance thereof. With past experiences, the operation target can be effectively measured and evaluated using some key performance indexes. However, every one single index covers only very limited scope and fails to comprehensively and effectively reflect the current state of operation. Without effective performance indexes, it is difficult to timely propose suitable solution to upgrade the performance. In addition, since every individual index has its own range of value, the one single index is not necessarily suitable for evaluating the operation target in all situations. In the case the operation performance can not be evaluated with one single index and there is not a complete set of rules for evaluation, the decision maker will be prevented from making the optimal managing policy for the business.
On the other hand, it is possible to examine more aspects of the operation performance by selecting multiple key indexes to evaluate the business operation target. While different indexes can compensate with one another to reflect the operation performance in different ways, they tend to confuse and exhaust the manager. Since different indexes are related to one another in a relatively complicated way, a manager requires professional knowledge or assistance from related references to make sure the influence of different indexes on one another, in order to make most suitable decision in response to the current operating condition. Even if the manager tries to take all the indexes into consideration, there are times these indexes are in conflict with one another and the manager fails to find any suitable rule for deciding the right indexes for making comprehensive evaluation. Therefore, it has become an important requirement in the field of business management and operation to work out a factor analysis system and method capable of assisting a decision maker to manage the target value in an easy and right way.